Which one of the following elasticities takes the average of prices and quantities:
A)Point elasticity of demand
B)Arc elasticity of demand
C)Income elasticity of demand
D)Cross elasticity of demand

Question

Quizplus · Accepted Answer

Arc elasticity of demand calculates elasticity over a range of prices and quantities by taking the average of the starting and ending prices and quantities. This contrasts with point elasticity, which calculates elasticity at a specific point on the demand curve. Income elasticity and cross elasticity do not involve averaging prices and quantities in their calculations.

Which One of the Following Elasticities Takes the Average of Prices